Mountain Dew

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Aug 13,2010

Case Analysis
Mountain Dew: Selecting new Creative

1. Introduction:-
Product/Brand under study – Mountain Dew is a Carbonated Soft Drink Invented by Hartman Beverage Company in 1940.Its Bright yellow – Green in color and has more sugar, Citrus flavor, and Less Carbonation as compared to the other soft drinks available in the market. It was taken over by PepsiCo in 1964 and now stands 3rd in the soft drinks category.

5 C’s:-
Company – PepsiCo is one of the biggest Soft drink Company in the world. They manufacture carbonated and non-carbonated Soft drinks along with salty, sweet and cereal based snacks. Besides Pepsi, the company, Mountain Dew brand as well. Competitors – The retail carbonated soft drinks market has two giants Coke and Pepsi, which compete fiercely with each other to get market share. Currently Coke is the market leader. In its own category the product is facing 3 major competitors:- * Cadbury Schweppes’ Dr. Pepper – cherry –flavored

* Coca-Cola’s Sprite – lime flavored carbonated water * Coca-Cola’s 7-UP - lime flavored carbonated water
Customers – The customer base of Mountain Dew is mostly rural town and farms, Working class towns and downscale rural people below the age of 34 years. The company particularly targets the teenagers through its advertisement campaign which connects dew with attributes like Irreverent, Daring, and Fun etc. Apart from these customers Dew has been able to do well in suburban places as well. Context – The Do the Dew campaign which has been the main reason behind the success of Mountain Dew brand is entering into eighth Year. There is a growing threat from Non-Carbonated Soft drinks and also the company feels that they have oversaturated the extreme sports part in their campaign. The market Share of Pepsi is decreasing in all Categories except Dew , and so the company management feels that it’s the time to change the advertisement strategy in order to express Mountain Dew’s distinctive features. Collaborators-PepsiCo’s advertising partner BBDO ,New York.

2. Problem Statement-
Develop right advertisements to maximize the impact of Mountain Dew’s relatively small media budget to figure out as how to keep the Mountain Dew campaign working hard to maintain the brands relevance to acquire new customers and retain the existing consumers.

Features of Mountain Dew
* It had more sugar and more caffeine but less carbonation, so that it could be drunk quickly. * Targeted the young male crowd who were interested in extreme adrenaline pumping extreme sports. * In 1999, Mountain Dew was the third largest CSD at retail, overtaking Diet Coke. * Mountain Dew consumers were loyal to the brand.

* According to PepsiCo’s key performance indicators (KPIs), there was an increase in the number of people who considered that Mountain Dew tasted better than other CSDs, those who considered that Mountain Dew was for someone like them and those who considered that Mountain Dew drinkers were ‘cool’. * The ‘Do the Dew’ campaign constantly featured the Dew Dudes in all their advertisements till 1997. * There was tremendous market opportunity since the cola brands were fast fading whereas the flavored brands’ consumption was rising. Competitor brands in flavored drinks category

Problems faced by Mountain Dew
* Mountain Dew was entering its 8th year with the same alternative sports based advertising which was now being exploited by other brands. * Key competitors were raising their advertisement budgets whereas Mountain Dew relied on the creative aspect of their advertisements to maximize their sales and profits. * Emergence of non-carbonated substitutes like Gatorade, bottled water, Snapple and Arizona, Red Bull and SoBe was a concern for Mountain Dew. * Increased concern about health among consumers led to decrease in consumption of carbonated drinks. * Industry rumours that Coca-Cola, Annheuser-Busch...
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